Compton Petroleum announces terms of $150 million bought deal equity offering



    CALGARY, Sept. 11 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE
- CMZ) is pleased to announce the terms of its previously announced public
offering (the "Offering") of units of Compton ("Units"). Compton has entered
into an agreement with a syndicate of underwriters, led by Canaccord Capital
Corporation and including BMO Capital Markets Inc., FirstEnergy Capital Corp.,
Scotia Capital Inc., TD Securities Inc. and Salman Partners Inc., who have
agreed to purchase l20,000,000 Units on a bought deal basis at a price of
$1.25 per Unit. Each Unit consists of one common share in the capital of
Compton (a "Common Share") and one common share purchase warrant (a
"Warrant"). Each Warrant will entitle the holder to acquire an additional
Common Share (a "Warrant Share") during the 24 month period following closing
of the Offering at an exercise price of $1.55 per Warrant Share. Under the
Offering, Compton will issue an aggregate of 120,000,000 Units at a price of
$1.25 per Unit for aggregate gross proceeds to Compton of $150,000,000.
    Compton has agreed to grant the Underwriters an over-allotment option to
purchase additional Units equal to up to 15% of the Units sold pursuant to the
Offering, exercisable at any time, in whole or in part, up to 30 days from the
closing of the Offering, which is scheduled to occur on September 25, 2009. If
the over-allotment option is exercised in full, a total of 18,000,000
additional Units will be sold under the Offering. Upon closing of the
Offering, and not including the Common Shares issuable pursuant to the
over-allotment option or the Warrant Shares issuable upon exercise of the
Warrants, Compton will have approximately 263 million Common Shares issued and
outstanding.
    The Offering will be sold publicly in each of the provinces of Canada,
except Quebec, and in the United States pursuant to the multi-jurisdictional
disclosure system implemented by securities regulatory authorities in the
United States and Canada, and in such other jurisdictions as may be agreed to
by Compton and the Underwriters. A registration statement relating to these
securities has been filed with the United States Securities and Exchange
Commission but has not yet become effective. The securities may not be sold
nor may offers to buy be accepted prior to the time the registration statement
becomes effective. This news release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of these
common shares in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. The Offering is subject to certain customary
conditions and regulatory approvals, including the approval of the Toronto
Stock Exchange and the New York Stock Exchange.
    "This transaction is an important first step in our restructuring
process, contributing to our future ability to unlock the potential of
Compton's resource rich asset base," said Tim Granger, President & Chief
Executive Officer. "The proceeds of the offering will allow us to reduce our
debt level and will result in a stronger balance sheet. This will enable us to
take advantage of opportunities that may emerge from the current industry
environment, focusing on opportunities for future growth and value for our
shareholders."
    Compton is taking a multi-faceted, staged approach to recapitalization,
which is intended to support the needs of all stakeholders. The Corporation's
recapitalization approach is considering the potential utilization of a number
of alternatives to reduce Compton's debt level, including the issuance of new
capital and/or equity, the conversion of debt to equity, the sale of gross
overriding royalty interests on properties, the sale of assets, and/or mergers
or acquisitions. Progress continues on several alternatives.
    The Offering is subject to certain customary conditions and regulatory
approvals, including the approval of the Toronto Stock Exchange and the New
York Stock Exchange. A copy of the preliminary prospectus may be obtained from
Amy Patel at Canaccord Capital Corporation, 161 Bay Street, Suite 3000,
Toronto, Ontario, M5J 2S1, 1-800-663-1899. A copy may also be obtained by
visiting SEDAR at http://www.sedar.com or the SEC's website at
http://www.sec.gov.

    Forward Looking Statements

    Certain information regarding the Corporation contained herein
constitutes forward-looking information and statements and financial outlooks
(collectively, "forward-looking statements") under the meaning of applicable
securities laws, including Canadian Securities Administrators' National
Instrument 51-102 Continuous Disclosure Obligations and the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include estimates, plans, expectations, opinions, forecasts, projections,
guidance, or other statements that are not statements of fact, including
statements regarding (i) cash flow and capital and operating expenditures,
(ii) exploration, drilling, completion, and production matters, (iii) results
of operations, (iv) financial position, and (v) other risks and uncertainties
described from time to time in the reports and filings made by Compton with
securities regulatory authorities. Although Compton believes that the
assumptions underlying, and expectations reflected in, such forward-looking
statements are reasonable, it can give no assurance that such assumptions and
expectations will prove to have been correct. There are many factors that
could cause forward-looking statements not to be correct, including risks and
uncertainties inherent in the Corporation's business. These risks include, but
are not limited to: crude oil and natural gas price volatility, exchange rate
fluctuations, availability of services and supplies, operating hazards, access
difficulties and mechanical failures, weather related issues, uncertainties in
the estimates of reserves and in projection of future rates of production and
timing of development expenditures, general economic conditions, and the
actions or inactions of third-party operators, and other risks and
uncertainties described from time to time in the reports and filings made with
securities regulatory authorities by Compton. Statements relating to
"reserves" and "resources" are deemed to be forward-looking statements, as
they involve the implied assessment, based on estimates and assumptions, that
the reserves and resources described exist in the quantities predicted or
estimated, and can be profitably produced in the future.
    The forward-looking statements contained herein are made as of the date
of this news release solely for the purpose of disclosing the equity issue.
Compton may, as considered necessary in the circumstances, update or revise
the forward-looking statements, whether as a result of new information, future
events, or otherwise, but Compton does not undertake to update this
information at any particular time, except as required by law. Compton
cautions readers that the forward-looking statements may not be appropriate
for purposes other than their intended purposes and that undue reliance should
not be placed on any forward-looking statement. The Corporation's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.

    About Compton Petroleum Corporation

    Compton Petroleum Corporation is a public company actively engaged in the
exploration, development and production of natural gas, natural gas liquids,
and crude oil in western Canada. Our strategy is focused on creating value for
shareholders by providing appropriate investment returns through the effective
development and optimization of assets. The Corporation's operations are
located in the deep basin fairway of the Western Canada Sedimentary Basin. In
this large geographical region, we pursue three deep basin natural gas plays:
the Basal Quartz sands at Hooker in southern Alberta, the Gething/Rock Creek
sands at Niton and Caroline in central Alberta, and the shallower Plains Belly
River sand play in southern Alberta. In addition, we have an exploratory play
at Callum/Cowley in the Foothills area of southern Alberta. Natural gas
represents approximately 86% of reserves and production. Compton's shares are
listed on the Toronto Stock Exchange under the symbol CMT and on the New York
Stock Exchange under the symbol CMZ.





For further information:

For further information: Susan J. Soprovich, Director, Investor
Relations, Ph: (403) 668-6732, Fax: (403) 237-9410, Email:
investorinfo@comptonpetroleum.com, Website: www.comptonpetroleum.com

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